Labor Department to Issue New H-1B, PERM Wage Regulation

In December, the Department of Homeland Security (DHS) and Department of Labor (DOL) Interim Final Rule (IFR) issued on Oct. 8, 2020, were struck down in Federal Court. Yesterday, DOL announced it will publish a final rule to amend wage obligations for the H-1B, H-1B1, and E-3 specialty occupation visa classifications and for permanent labor certifications (PERMs). The new regulation makes changes to the IFR, including revised wage levels, a transition period that begins July 1, and a phased adoption of the new wage levels.

Main Points:

  • DOL posted an advance copy of the rule on its website and will officially publish the rule in the Federal Register in the coming days.
  • The new regulation includes a transition period under which the new wage thresholds will not be applied until July 1, 2021, and will be implemented for different categories in a phased approach.
  • The new regulation is scheduled to take effect 60 days after it is published. The incoming administration may halt the Trump administration’s regulations that have not taken effect by the time President-elect Joe Biden takes office on Jan. 20.
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